Differentiation from offer
We continue with the same schematic as in the previous lesson and we start with a fundamental premise: from the point of view of the offer, the enterprise analyses its capability to create a product / service which is unique for clients, and susceptible for them to pay more for it.
With differentiation, we refer to a unique and different offer by the enterprise. This differentiation created by the enterprise is not given only in the product / service rendered, but (as we have mentioned in this course) it can be identified in any moment in the client/enterprise relationship. We are referring to the materials used in the production process, to the production process in itself, to the marketing efforts developed by the enterprise, to the product / service characteristics, to the complementary services (such as post-sale service), etc.
In the following graphic, we can see the identification of differentiation potential from the point of view of the offer in the so-called transactions matrix. It is distinguished between differentiation of product ( hardware ) and service ( software ).
We can see the life cycle of the product. First, hardware and software are seen together, giving place to standardized products and services. This happens in a less demanding market. However, the fact that the market becomes more critical or mature gives way to a blending of hardware and software in the search of offering the client a distinctive and unique product /service for which he would be willing to pay more money. From this blending, we must obtain results that satisfy the needs of clients, creating an added value for being a concrete product, and not just another one.
We simplify this (in the graphic) with standardized products when hardware and softwarecan not be distinguished. When they are both distinguished, they must form a system that gives place to a differentiated product/service for the client.